British Transport Police (BTP) has completed the first phase of its pioneering ‘Drone in a Box’ (DIAB) project with seven operational sites now live, further enhancing its ability to respond to trespass and emergency incidents.
The project has been delivered through BTP’s innovative Drones Development Programme, which is focused on integrating Beyond Visual Line of Sight (BVLOS) drone technology into the force’s wider operational capabilities. The technology enables drones to be launched and piloted remotely from a London-based control room, providing officers and Network Rail staff on the ground with live aerial intelligence within seconds.
BTP BVLOS drones are operated under a comprehensive ‘Safety Management System’ to ensure our operations are safe to the aviation community as well as those on the ground. We continue to work closely with the regulator, the Civil Aviation Authority, as we further develop our capability.
Since launching our first site in Leeds in April 2025, four sites have been introduced across south London, as well as Leicester and Manchester.
These locations are known trespass hotspots and deployment of the DIAB forms part of BTP’s continued investment in innovative technology to keep everyone on the railway safe, reduce risk for officers and railway staff, and keep the network moving.
Between 1 April and 25 July, BTP’s Drone in a Box Capability conducted 550 flights. During that period, drones were the first resource on scene in 68% of operational incidents, with an average response time of just three minutes and 28 seconds.
The technology has already delivered tangible benefits for passengers and the rail industry. In the same reporting period, drone deployments have helped prevent an estimated 7,911 delay minutes and delivered more than £600,000 in potential disruption savings to the railway.
The tech is also proving invaluable in the search for vulnerable people and in quickly assessing reports of trespass, allowing officers to focus their resources where they are most needed. 20% of operational deployments to date have been to assist vulnerable people, while 44% of operational deployments to date were resolved through area searches which confirmed no trace of a reported person, enabling railway services to continue running safely without unnecessary disruption.
Recent deployments have included assisting officers during the containment of a suspected burglar near East Croydon, locating a lineside fire near Hither Green and helping safeguard a person in crisis near Thornton Heath by providing officers with their precise location.
Speaking at a specially held event at one of the site locations in Manchester, BTP Chief Constable Lucy D’Orsi said: “We’re just over a year on from our first site launch in Leeds and it’s great to see that our remote BVLOS drone capability is helping us reach incidents faster, make better-informed decisions and minimise disruption to the railway while keeping people safe.
“I’ve no doubt this capability will become even more instrumental as we continue to learn and fine tune from every deployment. We couldn’t do it without the support of our partners at Network Rail and the Department of Transport Operator (DfTO), who’ve been instrumental in working with us throughout.
“We’re going to continue to invest in the capability to ensure it’s the best it possibly can be, with a planned move to a new flight operations room in London, and further sites scheduled to open in the coming months.”
Rupert Lown, Group Safety, Security, Health & Environment Director, DFTO, said: “The rollout of these cutting-edge drones is making a real difference to more and more customers across the network. Drones are enabling rapid identification and response to dangerous incidents such as trespass and can resolve incidents that often cause frustrating delays for customers before they can occur.
“Closer collaboration between train operators, Network Rail and BTP is helping to deliver a better, more reliable and safe railway for everyone in Britain.”
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Foreign drone manufacturers, distributors, component suppliers, and service companies frequently make the same mistake when entering the United States market: they assume there is one “drone agency” they need to satisfy or they assume satifying things with one agency fixes everything with everyone else. Those are two misunderstandings that can cost a lot of time and money.
The United States regulates unmanned aircraft through a web of federal agencies, each with its own statutes, regulations, enforcement attorneys, and penalty structures. The Federal Aviation Administration (FAA) controls the safety side of flying. The Department of Transportation (DOT) controls the economic side of operating aircraft commercially. U.S. Customs and Border Protection (CBP) controls what crosses the border inbound. The Commerce and State Departments control what crosses the border outbound — including “deemed exports” that never physically leave the country. The Federal Communications Commission (FCC) controls the radio transmitters inside every drone and controller. And on top of all of that sits a rapidly hardening layer of country-of-origin restrictions aimed primarily, but not exclusively, at Chinese-made aircraft and components.
A foreign company can be perfectly compliant with five of these regimes and still have its entire U.S. business model destroyed by the sixth. I have seen shipments seized at the port, equipment authorizations denied, declarations of compliance rescinded, equipment siezed in wharehouses, and hundreds of thousands of dollars of fines imposed.
This article is a roadmap for foreign companies selling drones, drone components, or drone services into the United States, or operating drones inside the United States. Each section gives you the essentials, flags how that topic interacts with the others, and links out to my in-depth articles on each subject so you can go deeper where your business needs it.
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The Big Picture: Who Regulates What in the U.S. Drone Market
The United States is a federated system. Federal law, state law, county ordinances, and even city rules can all apply to a single drone operation at the same time. I walk through that entire structure — federal public laws, the Federal Aviation Regulations, the other federal agencies, the 50 states, and international resources — in my Ultimate Guide to Drone Laws. For a foreign company doing business here, the federal layer is where most of the landmines sit, and it breaks down roughly like this:
- FAA — aircraft registration, pilot certification, operating rules (Part 107 for under 55 pounds, exemptions and Part 91 for 55 pounds and heavier), Remote Identification under 14 CFR Part 89, and airworthiness.
- DOT (Office of the Secretary) — economic authority to engage in air commerce, including the foreign civil aircraft permit regime in 14 CFR Part 375, plus hazardous materials transportation rules administered with PHMSA. See my article on DOT Economic Authority and Part 375.
- CBP (Department of Homeland Security) — tariff classification, duties (including Section 301 China tariffs), intellectual property enforcement at the border, and forced labor enforcement under the Uyghur Forced Labor Prevention Act. See my Drone Import Laws article.
- Commerce Department (BIS) and State Department (DDTC) — the Export Administration Regulations and the International Traffic in Arms Regulations. See my Drone Export Control Laws article.
- FCC — equipment authorization for every radio transmitter in your product, and now the Covered List restrictions on foreign-made unmanned aircraft systems and critical components. See my article on the FCC adding foreign drones to the Covered List. See also my other article on the Drone Import and Marketing Ban.
- NTSB, NOAA, NPS, DOI, and the states — accident reporting, protected airspace areas, land-use restrictions, and state procurement laws.
Keep this map in mind as you read. Nearly every business decision a foreign drone company makes — where to manufacture, which components to source, whom to hire, how to ship, what frequencies to use — touches multiple agencies.
Federal Aviation Administration: Registration, Pilots, and Operations
The FAA enforces the Federal Aviation Regulations. Aircraft are registered depending upon weight.
14 CFR Part 47 is for small to large aircraft (55 pounds and heavier) registration. For foreign companies the first surprise usually arrives at aircraft registration. Under 49 U.S.C. § 44102, an aircraft may be registered in the United States only if it is owned by a U.S. citizen, a permanent resident, or a corporation organized under U.S. law — and for non-citizen corporations organized in the U.S., 14 CFR § 47.9 adds the requirement that the aircraft be based and primarily used in the United States, with at least 60 percent of flight hours accumulated here. A foreign parent company that simply ships aircraft to a U.S. sales office and tries to register them in its own name will hit this wall.
For small unmanned aircraft under 55 pounds, registration runs through 14 CFR Part 48 (the online FAA DroneZone system). Part 48 contains its own treatment for foreign owners: for aircraft owned by foreign persons and operated in the United States, the certificate the FAA issues functions as a recognition of ownership rather than a full certificate of U.S. registration. Aircraft weighing 55 pounds or more cannot use Part 48 at all — they must be registered under Part 47 with an N-number, which is one of the many reasons heavy drones are a different legal animal (more on that below and in my dedicated guide).
On the pilot side, the good news is that Part 107 does not require U.S. citizenship. A foreign national employee can obtain an FAA remote pilot certificate if they are at least 16, can read, speak, write, and understand English, pass the aeronautical knowledge test, and clear Transportation Security Administration vetting. What trips up foreign companies is not the certificate — it is everything wrapped around the operation: Remote ID compliance (next section), airspace authorizations, waivers for advanced operations, and, critically, export controls that can be violated simply by letting the wrong employee access controlled technical data, as discussed in the export section below.
Foreign aircraft registered in another country raise an additional layer. Under 49 U.S.C. § 41703, foreign civil aircraft may be navigated in the United States only under specific conditions, and Part 89 requires the operator of a foreign-registered civil unmanned aircraft to file a notice of identification with the FAA before operating here. Layered on top of the FAA’s safety authority is the DOT’s separate economic authority over foreign civil aircraft, covered in its own section below — two different approvals from two different regulators that foreign operators routinely conflate.
Finally, remember that the FAA is only the beginning. A drone that is perfectly legal to fly under Part 107 can still be illegal to sell because its transmitter lacks an FCC equipment authorization, or illegal to import because of a forced-labor finding. Each of those regimes is covered below.
Part 89 Remote Identification: The Market Gatekeeper for Manufacturers
If you manufacture drones for the U.S. market, 14 CFR Part 89 — the Remote Identification rule — is effectively a market-access gate. The FAA describes Remote ID as a “digital license plate” for unmanned aircraft: the aircraft must broadcast identifying information (serial number or session ID, position, velocity, control station location, emergency status, and a time mark) over unlicensed spectrum receivable by ordinary personal wireless devices.
The rule has two halves. The operational half requires nearly all registered unmanned aircraft flying in the United States to remotely identify, with four paths to compliance: fly a Standard Remote ID aircraft, attach a Remote ID broadcast module (visual-line-of-sight only), fly inside an FAA-Recognized Identification Area (FRIA), or obtain an authorization or exemption not to broadcast. The production half is what foreign manufacturers must internalize: aircraft produced for operation in the United States must be designed and produced as Standard Remote ID aircraft in accordance with an FAA-accepted means of compliance, and the manufacturer must submit a declaration of compliance (DOC) that the FAA accepts and lists publicly at the FAA’s DOC database. The performance requirements include tamper resistance — the operator must not be able to disable the broadcast — and a self-test that prevents takeoff if Remote ID is not functioning.
Foreign manufacturers should study what happened with DJI’s rescinded declaration of compliance. In 2023, the FAA rescinded a DOC in the Federal Register after DJI reported that a DOC application apparently filed under its name covered products that did not actually comply with Part 89’s performance requirements. The lesson is twofold: the FAA polices this list, and your internal controls over who submits regulatory filings in your company’s name matter enormously. A rescinded DOC means the affected serial numbers are no longer compliant aircraft — a direct hit to your customers and your brand.
Remote ID also interlocks with the other regimes in this article. The broadcast requirement is implemented through radio transmitters, which must themselves be authorized by the FCC — and as discussed in the FCC section below, foreign-made drones and critical components now face Covered List restrictions on new equipment authorizations. And if your aircraft is registered in a foreign country, the notice-of-identification filing mentioned above applies before U.S. operations. For the complete treatment — including FRIAs, exemptions from broadcasting, the compliance timeline, and how to verify whether a given aircraft has a valid DOC — see my full article on Part 89 Remote Identification.
Department of Transportation: Economic Authority and Hazardous Materials
Foreign companies routinely assume that the FAA and the DOT are the same thing. Organizationally the FAA sits inside the DOT, but legally they exercise two distinct kinds of authority, and you may need approvals from both. The FAA administers safety: pilot certificates, airworthiness, operating rules. The Office of the Secretary of Transportation administers economics.
This distinction bites foreign drone companies in a specific place: 49 U.S.C. subtitle VII reserves “air carrier” economic authority to citizens of the United States, and the citizenship definition in 49 U.S.C. § 40102(a)(15) requires, among other things, that the company be under the actual control of U.S. citizens, that the president and at least two-thirds of the board be U.S. citizens, and that at least 75 percent of the voting interest be owned or controlled by U.S. citizens. A foreign-owned entity that wants to run drone package delivery for compensation — which requires Part 135 certification and DOT economic authority — has a structural corporate problem to solve long before the first flight, not merely a paperwork problem.
For foreign operators bringing foreign civil aircraft into the United States for commercial purposes such as demonstrations, aerial work, or surveys, DOT maintains the foreign civil aircraft permit regime under 14 CFR Part 375. Part 375 governs what foreign civil aircraft may do in U.S. airspace as a matter of economic policy — separate from, and in addition to, everything the FAA requires as a matter of safety. If you are a foreign manufacturer planning a U.S. demonstration tour for a foreign-registered aircraft, you should be analyzing Part 375, the FAA operating rules, the Part 89 notice of identification.
The DOT side of the house also administers the hazardous materials transportation regulations with the Pipeline and Hazardous Materials Safety Administration (PHMSA) in 49 CFR parts 171–180. There are however ways this set of regulations can we exempted.
Importing Drones into the United States
Everything your company physically ships into the United States passes through the jurisdiction of U.S. Customs and Border Protection, and as the importer of record you are held to a “reasonable care” standard across a startling range of obligations. My full article on Drone Import Laws, authored with customs attorney Jennifer Diaz, covers this in depth; here is what foreign sellers most need to understand.
Classification. Every imported product must be correctly classified under the Harmonized Tariff Schedule of the United States. Drones finally received their own tariff lines when a December 2021 presidential proclamation adopted new HTSUS codes specific to unmanned aircraft. Misclassification is not a clerical foot-fault: CBP can assess penalties scaled to negligence, gross negligence, or fraud.
Duties and country of origin. The declared country of origin drives duty rates, trade-program eligibility, and sanctions exposure. Chinese-origin unmanned aircraft carry an additional 25 percent duty under Section 301 of the Trade Act on top of standard rates, and members of Congress have repeatedly pushed for higher rates and new restrictions. Foreign companies attempting to manage this through third-country assembly need to understand the substantial transformation rules before they build the supply chain, not after CBP issues a penalty notice.
Forced labor. Section 307 of the Tariff Act of 1930 (19 U.S.C. § 1307) bars importation of goods made wholly or in part with forced labor, and the Uyghur Forced Labor Prevention Act creates a rebuttable presumption against goods with a nexus to the Xinjiang region or to listed entities — rebuttable only by clear and convincing evidence. CBP has already held up drone imports from a major Chinese manufacturer on forced labor grounds. You are expected to know your supply chain from raw materials to finished goods.
Intellectual property. CBP enforces trademarks and copyrights at the border and will detain, seize, or destroy infringing goods. If you own U.S.-registered marks, record them with CBP’s e-recordation program so the border works for you rather than against you. I know of one large shipment of drones was held up in custom due to alleged intellectual property violations.
The ICTS supply-chain rulemaking. In January 2025, the Commerce Department’s Bureau of Industry and Security issued an advance notice of proposed rulemaking on securing the information and communications technology and services supply chain for unmanned aircraft systems — a signal that transaction-level restrictions on foreign drone technology, above and beyond tariffs, are on the trajectory. Combined with the FCC Covered List developments discussed below, the import picture for foreign-made drones is tightening from multiple directions at once, and import planning now has to be done alongside FCC equipment authorization planning rather than in isolation.
The FCC is also working on prohibiting the importation of certain drones and parts. See my article here.
Export Controls: EAR and ITAR Reach Foreign Companies Operating Inside the U.S.
Here is the counterintuitive rule that catches more foreign drone companies than any other: United States export control law applies to your U.S. operations even if you never ship anything out of the country. The two regimes are the Export Administration Regulations (EAR), administered by the Commerce Department’s Bureau of Industry and Security, and the International Traffic in Arms Regulations (ITAR), administered by the State Department’s Directorate of Defense Trade Controls. My comprehensive article on drone export control laws covers who must comply, what is controlled, and the enforcement landscape; the essentials for foreign companies follow.
Deemed exports. Under 15 CFR § 734.13, releasing controlled technology or source code to a foreign national inside the United States is “deemed” an export to that person’s home country. A foreign-owned drone company with engineers, technicians, or even visiting executives from the home office can commit an export violation in its own U.S. conference room. If your U.S. subsidiary holds controlled technical data — flight controller source code, performance data on long-endurance aircraft, spray system specifications — access by your own foreign-national employees may require a license.
Commercial drones are controlled more often than you think. Dual-use classifications sweep in ordinary commercial products: ECCN 9A012 reaches unmanned aircraft designed for controlled flight beyond the operator’s natural vision with endurance of 30 minutes or more in 25-knot wind gusts (or 60 minutes or more regardless), ECCN 9A120 reaches spray drones with aerosol dispensing capacity above 20 liters, and ITAR Category VIII(h)(12) in 22 CFR § 121.1 reaches true swarming flight control systems that adapt in real time to operational or threat environments. Long-endurance heavy-lift aircraft — the same ones discussed in the 55-pound section below — are especially likely to trip these thresholds.
Penalties are severe and enforcement is active. Violations run from thousands of dollars in civil fines to twenty years’ imprisonment per violation. The Justice Department and BIS operate the Disruptive Technology Strike Force targeting illicit technology transfers, and prosecutions involving UAV components funneled to Russia and Iran are a stated priority, as the State Department’s industry guidance on Iran’s UAV activities makes clear.
Do not “fix” export compliance with citizenship-based hiring. Companies that respond to ITAR anxiety by refusing to hire non-citizens violate the Immigration and Nationality Act’s anti-discrimination provision. The Justice Department has settled with a major law firm over exactly this misunderstanding and has sued other prominent companies on the same theory. ITAR limits access to certain data to U.S. persons as defined in the regulations — which includes lawful permanent residents, asylees, and refugees — and it does not authorize citizens-only hiring.
Export classification also feeds back into your FAA work: when you submit manuals and technical data to the FAA for an exemption or a Section 44807 determination, export-controlled material must be submitted in a compliant manner, a point I address in the heavy-drone section next-to-last below and in the large drone guide.
FCC Equipment Authorization and the Covered List
Every drone and every controller contains radio transmitters, and in the United States a wireless transmitter generally cannot be marketed or sold without an FCC equipment authorization. The FCC has fined drone sellers heavily for marketing non-compliant transmitters — including a $2.8 million proposed penalty against HobbyKing — so this was already a compliance area foreign sellers could not ignore. It has now become something much bigger.
As part of the equipment authorization application, the applicant certifies under 47 CFR § 2.911 that it is not an entity producing “covered” equipment on the FCC’s Covered List, created under the Secure and Trusted Communications Networks Act. The FCC will not issue an equipment authorization for covered equipment. In December 2025, following a national security determination by an Executive Branch interagency body, the FCC announced the addition of foreign-produced unmanned aircraft systems and UAS “critical components” — flight controllers, data transmission devices, ground control stations, navigation systems, sensors and cameras, batteries and battery management systems, motors, and associated software — to the Covered List. This is the first time an entire category of equipment, rather than named entities’ products, has been added. Temporary carve-outs exist (notably for Blue UAS Cleared List items until January 1, 2027, and for components qualifying as domestic end products), and affected companies can seek a one-year Conditional Approval, which requires, among other things, an onshoring plan for manufacturing UAS critical components.
The practical consequence for foreign manufacturers is stark: existing equipment authorizations remain valid for now, so previously authorized models can still be imported, sold, and used — but new foreign-made drone models and critical components face a closed door at the FCC absent a Conditional Approval or exemption. Because a Standard Remote ID drone is, by definition, a broadcasting device, this FCC development sits directly upstream of your Part 89 compliance and your entire U.S. product roadmap. I walk through the definitions, the exemptions, the Conditional Approval process, and the frequently asked questions in my dedicated article on the FCC’s addition of foreign drones and critical components to the Covered List, and the related statutory background in my NDAA 2025 article. See also this article. https://jrupprechtlaw.com/fcc-drone-import-marketing-ban/
If you need an FCC Conditional Approval or a DCMA Blue Listing, contact us as we can help.
The benefit to the Blue Listing is that there are benefits to selling to the military and also doubles as an NDAA compliance proof which is very valauble when customers purchase for purposes of competing on government contracts where there are NDAA compliance requirements.
Drones 55 Pounds and Heavier: A Different Regulatory Universe
Part 107 — the relatively streamlined commercial drone rule — only reaches unmanned aircraft weighing less than 55 pounds. The moment your aircraft weighs 55 pounds or more at takeoff, you leave Part 107 entirely and enter the world of Part 91 operating rules, Part 47 N-number registration, Section 44807 airworthiness determinations, and petitions for exemption. Foreign heavy-lift and agricultural drone manufacturers targeting the U.S. market need to plan for this from day one, because the approvals attach to specific aircraft, specific operators, and specific operations. My Ultimate Guide to Large Drones (55 lbs and Heavier) covers this ecosystem end to end; here is the shape of it.
The core problem is airworthiness: 14 CFR § 91.7 requires civil aircraft to be airworthy, and most drone manufacturers have no type certificate or airworthiness certificate. Congress solved this with 49 U.S.C. § 44807, which lets the FAA determine that certain unmanned aircraft do not need an airworthiness certificate. A 44807 determination applies to the make and model — once granted, it benefits every customer flying that aircraft — which makes it extraordinarily valuable to a manufacturer. The determination is almost always paired with a petition for exemption from the operating regulations the operator cannot practically satisfy, and the exemptions come with a “blanket” certificate of authorization defining where flights may occur relative to airports.
Stacked on top: each aircraft needs a Part 47 N-number registration (with the foreign-ownership citizenship issues discussed in the FAA section above applying in full force), each pilot needs a remote pilot certificate, some exemptions require medical certificates, spraying operations trigger the Part 137 agricultural aircraft rules, and carrying another person’s property for compensation triggers Part 135 — which brings back the DOT economic-authority and citizenship problems from the DOT section. And because heavy drones carry large battery banks and achieve long endurance, they are exactly the aircraft most likely to be export-controlled under ECCN 9A012 or, for large spray drones, ECCN 9A120 — meaning the manuals and technical data you submit to the FAA and share with U.S. partners must be handled under the export rules covered above. A foreign manufacturer that coordinates its 44807 petition, its export classification, its FCC authorizations, and its import planning as one program will beat competitors who discover each problem sequentially.
We have already develoepd ways to appropriately submit technical data to the FAA in a compliant manner. We have also obtained multiple 44807 determinations for aircraft.
Other Traps: Accident Reporting, State Laws, and Procurement Restrictions
A few additional regimes deserve brief mention because they routinely surprise foreign entrants.
NTSB accident reporting. The National Transportation Safety Board’s regulations at 49 CFR Part 830 require immediate notification for certain unmanned aircraft accidents. If your U.S. demonstration or customer flight goes wrong, there may be a federal reporting obligation on a very short clock — and a botched response compounds the problem.
State and local law. Beyond the federal layer, all 50 states have drone-related laws, and counties and cities add more. For foreign sellers, the most commercially significant state development is procurement restrictions: a growing number of states restrict or prohibit their agencies from purchasing or using drones manufactured in certain foreign countries, which shrinks the addressable government market for affected manufacturers regardless of anything the FAA or FCC does.
The NDAA layer. Federal statutes such as Section 848 of the FY2020 National Defense Authorization Act and Section 1709 of the FY2025 NDAA restrict federal procurement and operation of certain foreign-made drones and drove the FCC Covered List expansion discussed above. If federal, state, or critical-infrastructure customers are part of your U.S. strategy, the country-of-origin analysis belongs at the front of your market-entry plan, not the end.
Doing Business in the U.S.: Entities, Contracts, and Liability
Beyond the agency-by-agency requirements, foreign drone companies need to make several structural business decisions that interact with everything above.
Entity selection is a regulatory decision, not just a tax decision. As discussed in the FAA and DOT sections, aircraft registration eligibility under 49 U.S.C. § 44102 and air carrier citizenship under 49 U.S.C. § 40102(a)(15) turn on how your U.S. entity is organized, who sits on its board, who its officers are, and who actually controls it. Corporate counsel who form a standard Delaware subsidiary without knowing these aviation rules can unknowingly foreclose business lines the company planned to pursue. The time to run this analysis is at formation.
Distribution and dealer agreements should allocate regulatory risk explicitly. Who is the importer of record, and therefore who bears the reasonable-care obligations and penalty exposure at the border? Who is responsible for maintaining the FCC equipment authorizations and the Part 89 declarations of compliance for the products being sold? Who bears the loss if a declaration of compliance is rescinded or an equipment authorization becomes unavailable for a new model? What happens to inventory and minimum purchase commitments if a Covered List development, tariff change, or forced-labor detention makes a product line unsellable? These are now foreseeable events in the drone industry, and contracts drafted with generic templates handle none of them.
Product liability and insurance. Selling into the United States exposes foreign manufacturers to American product liability litigation, and operating here exposes service companies to aviation liability. Aviation-specific insurance for unmanned aircraft is a developed market, but underwriters will ask about your regulatory posture: whether the aircraft have valid declarations of compliance, whether operations are conducted under proper certificates, waivers, or exemptions, and whether the operating limitations in an exemption or certificate of authorization were being honored at the time of the loss. Noncompliance with the regimes in this article does not just create government enforcement risk — it can undermine your insurance coverage and hand plaintiffs a negligence-per-se theory in litigation.
How the Regimes Interact: Three Real-World Scenarios
Because the agencies above do not coordinate their requirements with each other, the best way to see the interactions is through the kinds of fact patterns that actually walk through my door.
Scenario one: an Asian manufacturer launching a new small drone model in the U.S. The aircraft flies beautifully and the company assumes the hard part is done. In reality, the launch depends on a chain of approvals: the new model’s transmitters need FCC equipment authorizations, which now run headlong into the Covered List restrictions on foreign-produced UAS and critical components unless an exemption or Conditional Approval or Blue Listing applies; the aircraft must be produced as a Standard Remote ID aircraft under an FAA-accepted means of compliance with an accepted declaration of compliance; the shipments must clear CBP with correct HTSUS classification, Section 301 duty payment, and a defensible UFLPA supply-chain file. Any one of those workstreams can delay or kill the launch date. The FCC piece alone can now be dispositive for a foreign-made model.
Scenario two: a European heavy-lift spray drone manufacturer. The aircraft weighs well over 55 pounds, so Part 107 is unavailable. The company needs a Section 44807 determination for the make and model, exemptions for its customers, Part 47 N-number registrations, and its customers doing agricultural work need Part 137 operating certificates. Because it is with more than 20 liters of dispensing capacity, it is very likely export-controlled under ECCN 9A120 which means it cannot be sold to just anyone in the United States. Registration in the customers’ names raises the 49 U.S.C. § 44102 citizenship analysis for any customers that are themselves foreign-owned.
Scenario three: a foreign drone services company winning U.S. inspection contracts. No aircraft are being sold at all, yet nearly every regime still applies. The pilots need Part 107 remote pilot certificates (available to foreign nationals, with TSA vetting). The aircraft need U.S. registration — raising the foreign-ownership registration issues — or, if foreign-registered, a Part 89 notice of identification plus the DOT’s Part 375 foreign civil aircraft analysis. If the business model grows into carrying customers’ property for compensation, the Part 135 and DOT economic citizenship problems arrive. And if the company’s fleet is foreign-made, its state and federal government customers may be barred from hiring it under procurement restrictions regardless of its FAA paperwork.
A Compliance Roadmap for Foreign Companies Entering the U.S. Drone Market
Sequencing matters. Based on the interlocking requirements above, here is the order in which I recommend foreign companies work the problem:
- Classify your products under the export regulations first. Determine whether your aircraft, components, software, and technical data are EAR- or ITAR-controlled before you hire U.S. staff, open a U.S. office, or send technical data across the border — because deemed export exposure begins the moment controlled data is accessible to the wrong person.
- Resolve the FCC question early. Confirm whether your products can obtain (or already hold) equipment authorizations in light of the Covered List developments, and evaluate Conditional Approval, obtaining a Blue Listing, or trying to build in the United States (but also consider your parts and whether you may have supply chain problems). There is ALOT to this area. I would highly suggest you get a paid call to go over the issues.
- Build the import compliance file. HTSUS classification, country-of-origin and Section 301 analysis, UFLPA supply-chain tracing, and IP recordation, per the import article.
- Structure the U.S. entity with aviation citizenship rules in mind. Registration eligibility under 49 U.S.C. § 44102 and, if you will operate commercially, the DOT citizenship and Part 375 issues, should shape your corporate formation documents.
- Obtain the FAA approvals your products and operations need. Remote ID means of compliance and declarations of compliance for manufacturers; Part 107 certificates, waivers, or 44807 determinations and exemptions for operations, including heavy aircraft.
- Stand up ongoing compliance. Monitor DOC status, equipment authorization developments, tariff changes, state procurement legislation, and NDAA amendments — this landscape has changed materially every single year, and the pace is accelerating.
Frequently Asked Questions from Foreign Companies
Can a foreign citizen get an FAA remote pilot certificate?
Yes. Part 107 has no citizenship requirement. The applicant must be at least 16, be able to read, speak, write, and understand English, pass the knowledge test, and clear TSA security vetting. What foreign companies should watch instead is what technical data those pilots and their colleagues can access — that is an export control question, not a pilot certification question.
Can our foreign parent company register drones in the United States?
Generally not directly. Registration eligibility under 49 U.S.C. § 44102 is limited to U.S. citizens, permanent residents, and U.S.-organized corporations, with the non-citizen corporation route in 14 CFR § 47.9 requiring the aircraft to be based and primarily used in the United States. Most foreign companies solve this with a properly structured U.S. subsidiary. For small drones under Part 48, there is a separate mechanism recognizing foreign ownership. Get the corporate structure right before you buy or ship the fleet.
We already sell drones in the U.S. Does the FCC Covered List action shut us down?
Not immediately for existing models. FCC is proposing to ban the import and marketing of foreign drones. The problem is prospective: new foreign-made UAS and critical components are barred from receiving new equipment authorizations absent an exemption or a Conditional Approval, and the FCC has asserted independent authority to revisit existing authorizations. Your product roadmap — every new model, and every hardware revision requiring a new authorization — is where the exposure sits. See my full analysis of the Covered List action.
We only sell components, not complete drones. Are we affected?
Maybe. The Covered List action on foreign produced items reaches UAS “critical components” — flight controllers, data transmission devices, ground control stations, navigation systems, sensors and cameras, batteries and battery management systems, motors, and associated software. On the export side, individual components and technical data carry their own classifications independent of any aircraft. And on the import side, classification, origin, and forced labor obligations apply at the component level too.
Do we need a lawyer in every one of these areas?
You need a coordinated plan more than you need six disconnected specialists. The expensive failures I see are almost never caused by a hard legal question — they are caused by sequencing. Whoever leads your U.S. market entry should be responsible for the whole map in this article, and should bring in customs, export, and aviation counsel at the points where your facts demand it.
Conclusion
The United States remains one of the largest and most lucrative drone markets in the world, but it is not a market you can enter with a good product and a shipping account. FAA, DOT, CBP, Commerce, State, and FCC each hold a veto over some part of your business, and the interactions between their regimes — Remote ID and FCC authorization, heavy aircraft and export control, imports and the Covered List, corporate structure and aircraft registration — are where foreign companies most often stumble. The companies that succeed treat U.S. regulatory strategy as a single integrated program from the beginning.
If your company is planning to sell drones, components, or drone services into the United States — or is already here and wants to pressure-test its compliance posture — contact me and we can work through your situation together.
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In a sharp rebuke to the expansion of aerial police surveillance, the Minneapolis City Council has rejected a pilot programme that would have seen drones deployed as first responders across the city. The proposal, which failed on a deadlocked 6-6 vote, faced overwhelming opposition from residents who packed into an overflow room at City Hall and submitted 165 pages of written testimony denouncing the scheme.
The ‘Drones as First Responders’ initiative would have allowed the Minneapolis Police Department (MPD) to partner with the California-based technology firm Skydio for a free 75-day trial. Under the plans, drones housed at a North Minneapolis fire station would have been dispatched to 911 calls, livestreaming video to help police assess the necessity of a physical response or to locate missing persons. Proponents of the scheme, spearheaded by Council member LaTrisha Vetaw, argued the technology would assist an understaffed police force and potentially save lives by improving response times. Mayor Jacob Frey also threw his weight behind the pilot, arguing that the city’s residents should not become “collateral damage because of geopolitics”.
However, the geopolitical connections of the drone manufacturer proved to be a fatal stumbling block for the proposal. Public comments revealed deep-seated outrage over Skydio’s role as a supplier to the Israeli military during the ongoing war in Gaza, as well as its contracts with US Immigration and Customs Enforcement (ICE). Council member Jamal Osman, who had previously supported the pilot, ultimately voted against it, stating that while he supports exploring new technology, the city must only contract with vendors that are not involved with “militaries that are killing other people”. Dozens of constituents echoed this sentiment, arguing that local tax dollars—even after a free trial period—should not enrich a company complicit in what residents described as genocide and the terrorising of immigrant communities.
Beyond international and federal concerns, the proposal struck a painful local nerve regarding privacy and the MPD’s troubled history with the communities it polices. Minneapolis residents expressed profound distrust in a police department currently operating under a consent decree following the 2020 murder of George Floyd and subsequent findings of race-based policing by the Department of Justice. Commenters feared the drones would lead to mission creep, transforming an emergency response tool into a persistent, warrantless surveillance network predominantly targeting Black and minority ethnic neighbourhoods. The trauma of ‘Operation Metro Surge’ was frequently cited, a period when residents endured the constant buzzing of low-flying federal drones monitoring neighbourhoods at night, which left many feeling like they were living under military occupation.
While the vast majority of the public feedback was fiercely critical, a minority of residents did write in support of the drones, citing rising crime rates, illegal auto chop shops, and the persistent dumping of rubbish in residential areas. These residents expressed frustration that police often arrive too late to catch perpetrators and suggested that drones could provide vital, rapid documentation of these offences.
Following the vote, Minneapolis Community Safety Commissioner Todd Barnette expressed disappointment, stating that the rejection deprived the city of the opportunity to base its policies on local, real-world evidence rather than assumptions. Yet for the residents who successfully campaigned against the measure, the decision marks a vital victory for civil liberties. As one community group noted in its petition, Minneapolis neighbourhoods cannot be treated as testing grounds for militarised technology, demanding instead that the city invest in housing, education, and human-centred community safety
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Introducing HEIMDALL, our miniaturized, AI-powered radar for drone interceptors. Delivering the sensor technology powering the next generation of drone warfare. Integration ready.
https://www.valkyriedynamics.ai
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Airolit, a Swedish developer and manufacturer of UAV systems for defence and security, is launching Airolit Loudspeaker, a new UAV payload that enables direct communication from the air during ongoing missions. The solution is designed for operators who need to quickly identify an incident and communicate directly with people on the ground from the same UAV platform.
The payload integrates seamlessly with Airolit’s modular UAV systems and can be combined with EO/IR cameras and thermal sensors. This allows operators to identify anomalies or potential threats from the air and immediately issue instructions or warnings, without first deploying personnel into the area.
“Modern UAV systems are no longer just about gathering information. They are about enabling operators to make faster, better-informed decisions and act immediately based on the intelligence collected. With Airolit Loudspeaker, we add a new communication capability to our UAV platforms, making them an even more powerful operational tool for defence and security organisations,” says Claes Kjölhede, CEO of Airolit.
From detection to direct communication
Airolit Loudspeaker is designed for operational environments where rapid communication is essential. Combined with thermal sensors, the system can detect potential fire hazards, identify unauthorised personnel or support emergency response and security operations by delivering live voice communication or pre-recorded messages.
With an output of up to 123 dB, an effective communication range of up to 100 metres and a weight of just 225 grams, Airolit Loudspeaker delivers strong operational capability with minimal impact on UAV performance. The payload is fully integrated with Airolit’s modular platform and can quickly be installed alongside other sensors depending on mission requirements.
Facts – Airolit Loudspeaker
- UAV payload for operational communication
- Up to 123 dB sound pressure level at 1 metre
- Clear voice communication at distances up to 100 metres
- Live voice transmission and audio playback
- Weight: 225 g
- Fully integrated with Airolit’s modular UAV platforms
- Compatible with EO/IR and thermal sensors
- Operating temperature: –20 °C to +50 °C
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Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or the “Company”), a U.S.-based provider of advanced all-domain drone and robotic solutions for defense and national security, today introduced Hellcat
, a dual-use small unmanned aircraft system (sUAS) built on the proven Black Widow platform and designed for rapidly evolving operational environments.
Red Cat is unveiling Hellcat in conjunction with Eurosatory 2026, where defense leaders, government buyers, and industry partners from across Europe and allied nations are convening to evaluate current and future capabilities with a focus on small UAS, contested-environment operations, and interoperable systems. Built on the proven Black Widow platform, Hellcat incorporates extensive feedback gathered directly from warfighters in the field and lessons learned through an ongoing partnership with Ukraine.
Hellcat is designed to support customer-driven configurations, faster integration cycles, and software-defined updates that keep pace with changing mission needs. The platform brings Red Cat’s small UAS architecture to a broader global mission set, supporting coalition partners and customers with varying command-and-control preferences, payload needs, and integration paths.
“Black Widow was purpose-built to meet the rigorous requirements of the U.S. Army’s Short Range Reconnaissance program, and it remains a cornerstone of our small UAS leadership,” said Jeff Thompson, Chief Executive Officer of Red Cat. “For the development of this new platform, it’s been an ongoing honor to work side by side with Ukrainian drone experts in theater, continuously transforming our ISR drones to meet the ever-evolving demands of the battlefield.”
Hellcat is designed around Modular Open Systems Architecture (MOSA) principles, enabling customers to configure command-and-control, payload, software, and integration pathways based on operational needs. The platform is intended to support a broad range of customer requirements, including different government procurement frameworks, coalition interoperability needs, and mission-specific software environments.
“Small UAS programs need to keep pace with how operators are using them in the field,” added Thompson. “Hellcat reflects Red Cat’s approach to working directly with warfighters, incorporating feedback from operational environments, and folding those lessons back into the platform so users can adapt as the mission changes.”
Hellcat’s baseline configuration includes GPS-denied operation from power-on, RTH Azimuth recovery without GPS, WEB Standoff Radio support, a low-visibility tactical finish, and a field-repairable, rucksack-portable design. The aircraft offers 50+ minutes of flight time, up to 6.8 miles / 11 km of range with maintained operator line-of-sight, and is available with Red Cat’s Ocellus 3CP three-camera payload option.
Hellcat complements Red Cat’s broader Family of Systems, which includes Black Widow, FlightWave Edge 130, FANG, Blue Ops Variant 7 Uncrewed Surface Vessel (USV), and command-and-control and autonomy capabilities across air, land, and sea. Together, these systems support Red Cat’s strategy to deliver trusted U.S. and allied robotic solutions that enhance situational awareness, operational effectiveness, and mission safety for defense and national security customers.
For more information on Hellcat, visit https://redcat.red/hellcat/.
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AVSS – Aerial Vehicle Safety Solutions Inc. (AVSS) is proud to share results from its Precision Avalanche Management System (PAMS) testing in collaboration with Innovation, Science and Economic Development Canada, Department of National Defence, Parks Canada, Transport Canada and Natural Resources Canada through the Innovative Solutions Canada program. The testing of the PAMS occurred in February and March 2026 in Jasper, Alberta, Canada.
The testing results from using a drone to support avalanche control work with dropping explosives not only demonstrated the operational benefits and potential use cases for avalanche professionals, but also the collaborative opportunities for Canadian-owned companies to commercialize their new intellectual property and technology with end users from the Government of Canada.
In February and March, AVSS traveled to Jasper National Park to conduct avalanche control with live explosives. The first set of tests demonstrated AVSS’s system and operational abilities of safely operating drones for avalanche control work. The second set of tests gathered key system and operational data to demonstrate the potential operational use cases of the technology. This avalanche control testing program also seems to be the first documented regulatory-approved use of drones for avalanche control work that involved dropping live explosives in Canada.
Testing from this program has demonstrated the potential value of drone technology and how it can be incorporated into existing avalanche control programs as a new tool to their existing safe operations. Findings from this testing included ideal drop heights, best practices for safe drone operations for avalanche control, regulatory approvals for drone avalanche control work, and validation in varying operational environments. Furthermore, use cases were explored where a drone can augment the existing operations. AVSS will be highlighting some of the lessons learned and features of the technology at the upcoming Canadian Avalanche Association (CAA) conference in May in Penticton, B.C. As well, the findings from this initial testing program have provided AVSS with the ability to demonstrate a remotely controlled drop system and an automatic safe arming system, which does not arm the initiation system until the drone has reached a safe altitude from take-off, and reached a position within the drop radius of the target avalanche path.
The genesis of this technology is derived from AVSS’s guided delivery product line. However, unlike the guided parachute system, this does not include parachutes. The PAMS technology includes an aerial drop system integrated with a drone, a pull wire initiation system, and a sled housing that holds a traditional cast booster, which can be remotely dropped through the remote controller.
About ISC: Innovative Solutions Canada is an initiative designed to stimulate technology research, development, and commercialization of Canadian innovations. The program’s Challenge Stream and Testing Stream help startups and small/medium-sized businesses (SMEs) overcome technology testing and development hurdles so that they can produce globally-demanded products and services, while also improving government operations.
About AVSS: Founded in 2017, AVSS, a Canadian-owned company, started developing compliant safety products for commercial drones. These safety products are used worldwide and can be purchased from more than 70 partners. In 2020, AVSS expanded its product offerings with guided and unguided delivery systems. The delivery systems enable critical resupply when landing a drone, helicopter, or small airplane is not an option. In 2025, AVSS announced their newest innovation, the Precision Avalanche Management System (PAMS), for the proactive management and mitigation of avalanches. In 2026, AVSS introduced the Flying Beehive product line, which allows for air-launched FPV.
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WISPR Systems, a U.S.-based manufacturer of secure unmanned aircraft systems, announced today that its SkyScout 2+ has been approved for inclusion on the Blue UAS list, reinforcing the platform’s readiness for deployment across federal, public safety, and regulated commercial operations. The Defense Contract Management Agency’s (DCMA) Blue UAS Cleared List evaluates unmanned aircraft systems for cybersecurity, supply chain security, and operational integrity.
Blue UAS approval reflects rigorous evaluation of the platform’s cybersecurity safeguards, supply chain integrity, system architecture, and operational reliability. Inclusion on the list streamlines federal procurement while providing infrastructure, utility, and enterprise operators added assurance that SkyScout 2+ meets stringent security and compliance standards.
“Blue UAS approval removes a significant barrier for federal and public safety agencies that need secure, NDAA-compliant systems they can deploy immediately,” said John McArthur, Chief Revenue Officer at WISPR Systems. “With SkyScout 2+, agencies don’t have to compromise between cybersecurity assurance and field performance. This designation accelerates procurement and reinforces our commitment to building mission-ready platforms in the United States.”
Operators no longer have to choose between compliance and performance. This platform provides both.
Built for Secure, Reliable Deployment:
SkyScout 2+ was engineered with compliance and operational resilience at its core. The platform incorporates AES-256 encrypted communications, vetted domestically sourced components, hardened system architecture, and secure U.S.-based design, assembly, and lifecycle support.
This foundation enables trusted deployment for federally funded programs, public safety missions, infrastructure inspection, and other regulated environments.
Performance Without Compromise:
Beyond its compliance architecture, SkyScout 2+ delivers field-ready performance across demanding operational environments. The platform features long-range obstacle detection with precision terrain following, EMI protection for high-interference operations, and intelligent power and thermal management for sustained missions in extreme conditions. Its WISPR SkyBoss controller provides AES-256 encrypted transmission, IP55 protection, and extended runtime.
Strengthening Procurement Confidence:
Blue UAS inclusion streamlines federal procurement and supports organizations that must meet NDAA and cybersecurity compliance standards. The SkyScout 2+ is available now through WISPR Systems and authorized distributors.
For more information,
visit: https://wisprsystems.com/compliance/ + https://wisprsystems.com/skyscout2/
About WISPR Systems:
WISPR Systems designs and manufactures American-made drone technology built for secure, reliable operations across federal, public safety, infrastructure, energy, transportation, and enterprise sectors.
Founded in 2016 in Batesville, Mississippi, the company developed a platform that allows operators to maintain compliance while optimizing performance.
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Four men were arrested after officers from GMP’s Specialist Operations unit stopped a vehicle on Blackfriars shortly before midnight on Monday 6 April 2026.
After the suspects were detained, a drone alongside other items was found within the vehicle.
Four men aged between 24 and 34 were arrested on suspicion of conspiring to convey prohibited articles into a prison. They remain in custody for questioning.
Detective Sergeant Carla Dalton of GMP’s City of Manchester North Challenger & Prison Team said: “These arrests mark another important step in our wider efforts to tackle organised crime at its roots and make our streets safer.
“Criminal networks often attempt to use prisons and drones to co‑ordinate serious offences, including drug supply, violence and exploitation.
“Our officers are determined to prevent this and ensure those responsible are identified, disrupted and brought to justice.
“We will continue working closely with prisons across Greater Manchester to protect our communities and will take robust action against anyone who seeks to undermine public safety.”
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Terra Drone Corporation, a leading drone and Urban Air Mobility (UAM) technology company headquartered in Japan, is pleased to announce that it has entered into a capital and business alliance agreement and made a strategic investment in Amazing Drones LLC (hereinafter “Amazing Drones”), a company that develops and manufactures interceptor drones in Ukraine, through its subsidiary Terra Inspectioneering. In addition to expanding operations within Ukraine, Terra Drone will launch the interceptor drone “Terra A1” with Amazing Drones, promote the practical application of technical expertise cultivated in the country, and accelerate business development for global expansion.
In recent years, the global security environment has reached a major turning point. Particularly in the war in Ukraine, low-cost drones that can be deployed at scale have become a decisive factor on the battlefield, bringing about a significant transformation to conventional weapon systems characterized by high costs and small quantities. For example, there is an increasing number of cases where drones costing several hundred thousand yen neutralize weapons worth hundreds of millions of yen, fundamentally reshaping the economics of defense.” Under these circumstances, “countering low-cost threats with low-cost means” is becoming a new basic principle of defense.
Against this background, Terra Drone announced its full-scale entry into the defense equipment market on March 23, 2026 (*1), with the aim of contributing to the construction of a sustainable, next-generation defense foundation by utilizing the technology and operational expertise it has cultivated in the drone field worldwide.
Purpose of the Investment
Amazing Drones, the recipient of this investment, develops interceptor drones that can be deployed quickly and at low cost in the real combat conditions of Ukraine, where electronic warfare and communication jamming are commonplace, and possesses high technical capabilities and knowledge gained through actual combat. Through this investment, Terra Drone aims to incorporate these technologies and operational know-how and to establish solutions in the defense sector at an early stage.
Features of the New Interceptor Drone “Terra A1”
The new interceptor drone “Terra A1” is attracting attention as a new means of defense to replace conventional, expensive interceptor missiles, and features low cost, mass production capability, and quick response capability. It covers a range of 32 km at a maximum speed of 300 km/h, exceeding the typical 200 km/h speed of Shahed drones. By utilizing high stealth capabilities (low noise and low heat signature) through electric propulsion and achieving a flight time of 15 minutes, a single unit can complete the entire process from airspace surveillance to target detection and neutralization.
Terra Drone’s Future Outlook
Leveraging its mass-production technology and global expansion capabilities cultivated to date, Terra Drone will accelerate the development and supply of diverse unmanned assets, including interceptor drones, FPV drones, reconnaissance drones, and unmanned surface vessels (USVs).
Furthermore, in collaboration with partners in Japan, Europe, the United States, and other regions, the company will rmeet international defense demand and contribute to the improvement of security capabilities.
Terra Drone views the defense industry as an “industry that generates technological innovation and economic growth.” By building upon drone and AI technology, the company aims to construct a new social infrastructure by simultaneously achieving the strengthening of national security, the enhancement of industrial competitiveness, and the civilian application (spin-off) of technology.
Representatives’ Comments
Toru Tokushige, CEO of Terra Drone Corporation
“The exchange of UAVs seen in recent situations such as in the Middle East indicates that, in modern defense, securing defense drones that neutralize threats such as loitering munitions (suicide drones) is a top priority for the security of the international community.
Seeking an effective solution to this challenge, I have personally visited wartime Ukraine numerous times to engage in repeated dialogue with local engineers and relevant authorities. In that process, I gained confidence in the superior development capabilities of Amazing Drones, its ability to rapidly incorporate feedback from harsh combat environments into their aircraft, and we have built a strong relationship of trust.
Merging the knowledge Amazing Drones has cultivated in actual combat with the mass-production technology and quality control know-how possessed by Terra Drone is an extremely significant step toward building a next-generation defense foundation. Through this partnership, we will supply highly reliable solutions verified in combat environments to the world, contributing to the stability of the international community and strengthening deterrence.”
Maksym Klymenko, CEO of Amazing Drones LLC
“What began as a volunteer initiative by engineers and soldiers has now evolved into a manufacturing hub dedicated to defending our nation. Partnering with an international company like Terra Drone is an essential factor in elevating our operations from prototyping to reliable product supply. We look forward to Terra Drone’s global reach under Mr. Tokushige’s leadership and to advancing mass production together. I am confident that Terra Drone will be the pillar that brings our technology to the world. Through this partnership, we hope our innovations will help protect more lives.”
Terra Drone will continue to drive innovation in the defense sector and contribute to global stability and peace.
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